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Calculate how much your expenses will cost.

When you've compiled an inventory of your expenses, it's possible to estimate the actual cost. Each expense will be subject to an individual process.

Certain expenses have clearly defined expenses -permits and licenses are often expected to be clear and published costs. It is possible to estimate other costs that are less specific, such as employee wages. Go online and speak directly with your mentors, vendors and service providers to determine the amount similar businesses pay for expenses.

Add your expenses to get a full financial picture

After you have identified your business expenses and estimated their cost then divide your expenses into one-time or monthly expenses.

One-time expenses are the initial expenses needed to establish the business. The purchase of major equipment or employing a logo designer, and the cost of permits, licenses and fees are usually considered to be one-time expenses. It is common to deduct one-time expenses to be used for tax purposes which can help you save some money on taxes you'll be liable to. Be sure to keep track of your expenses and speak with your accountant when you are in the process of filing your taxes.

The monthly expenses usually include things like salaries, rent and utility bills. It is recommended to include at least one calendar year of expenses per month, however the ideal is to count five years.

Combine your one-time and monthly expenses to give you a solid estimate of the amount of capital you'll require and when you'll need it.

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